USDA rolls over DEIP allocations

USDA announced this afternoon that it was making all of the unused 2008-2009 Dairy Export Incentive Program (DEIP) allocations available in the new fiscal year starting July 1.

"The United States has taken a measured approach in operating the DEIP that is fully consistent with our WTO commitment,” says Tom Vilsack, USDA secretary. "It appears, however, that our international markets continue to erode and the European Union has shown no indication that it will refrain from providing dairy export subsidies. We will continue to use this program in a responsible manner in support of U.S. dairy farmers.”

Of the 2008-09 allocations announced in May, 48,176 metric tons of nonfat dry milk, 19,235 metric tons of butterfat and 2,878 metric tons were not used. These amounts will now be available for DEIP export subsidies this year.

The bad news is that once committed, they will count against World Trade Organization commitments levels for 2009-2010. For NFDM, they represent 70%; for butterfat, 91% and for cheese, 95%.